California has collected nearly $8.4 billion in tax money from legal marijuana sales since voters approved adult-use cannabis in 2016, Governor Gavin Newsom announced this week.
A big portion of that money comes from special cannabis taxes, while the rest comes from standard state sales taxes. Between April and June alone, the state pulled in over $261 million. Newsom explained that these dollars are helping fund important programs across California, such as child care, youth drug prevention, medical research, and cleanups for the environment.
At the same time, state leaders say they are working hard to stop illegal weed operations that don’t pay taxes or follow safety rules. Just last month, officials seized more than $13 million worth of illegal cannabis and tobacco products. Regulators noted that shutting down illegal operations keeps dangerous, untested items off the street and supports the honest business owners who actually play by the rules.
Even with billions coming in, California is still figuring out how to manage the legal market. Newsom recently signed a law banning weed packaging that looks attractive to kids, and he previously stepped in to pause a planned tax hike on cannabis goods. However, not everyone is happy with how things are going. Several critics and business owners still believe taxes and state rules are too harsh, making it tough for licensed shops to survive and easier for the underground market to stick around.
Dabbin-Dad Newsroom
